All Forum Posts by: TJ P.

3 - Property is held in an LLC, and the Equity Splits are actually membership splits of the LLC...not the property, because...
4 - The LLC is the asset, and income source, for the LLC

This may require more of an explanation or I didn't read something entirely but, how is the LLC/owners ultimately listed on the title? I ask as I'm under the impression that the deprecation/tax benes can only be claimed by those listed on the title. Am I correct here, way off base or in "start another thread" territory?

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Originally posted by @Kenneth Dai:

Properties have been performing, as expected, for the past few months,

Would you mind sharing what your performance expectations are/were?

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Currently paying $2500 for 2/1.5 1000sqft condo with non-existant weatherproofing and loud, well-heeled college student neighbors.

Why? Family situation dictated it.

I got a decent-paying job in the Bay Area. It's not tech but the wages have to compete with the Googles and Teslas.

The wife is on medical retirement- lost 3/4 of her income.

Oldest kid is in one of the best school districts in the nation.

Why don't I buy?

1) I don't like the area/state and

2) I've been burned twice now purchasing homes in cyclical markets and Bay Area prices are ridiculous.

Is my situation unique? Isn't everybody's?

Hope the prices come down to where I can purchase then nearly immediately, put in a renter to get some sort of cashflow and move to an area where I could hope to pay $1,300 in rent.

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Originally posted by @Kevin Siedlecki:

@TJ P. - I would look into your second option: looking for owner financing.

It is a consideration. Really worry about not clearing up credit and being saddled with potentially bad/contingency terms.

The lending idea isn't bad, either, but you'll probably have to get some licensing in order to lend to anyone outside your family/friend circle.

The whole crowd funding thing is interesting. Lots of podcasts about it- Hate to give up the tax benefits tho...

I would avoid the C/D cash idea - too risky for a first investment.

Another idea would be to parter up with someone who can get a loan. You bring cash and desire to the table, someone with clean credit can get the loan, and you come up with some kind of partnership agreement to split the proceeds.

I'm really looking at this route. Substantial researching on BP- Not sure how to structure these.

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Bear with me as I attempt to explain the situation.

Former residence has been going through short sale/ foreclosure/ etc for nearly 3 years. Long story short(not really)- Relocation due to job transfer required due to spouse being medically "retired". Put house for sale through normal channels but could not sell in a slumping local economy. Asked lender for mortgage assistance/ short sale options which they initially declined. Property was left vacant and suffered freeze/flood damage. Also, squatters broke in and stole some appliances and trashed the place. Insurance won't cover due to non-occupied status. Mortgage company then decides they will possibly allow short sale but has found ways over the last few years of delaying the decision.

During this time, the credit report is of course showing late payments. Original owners have since moved on and the primary earner has advanced their career and is able to save. In addition, there have been influxes cash (tax returns, side hustles, accident settlements, profit sharing, etc) that have put say, 15- 25K available to invest.

The desired investment originally, was to buy SFH turnkey out of state. They live in a high cost area and have no desire to invest locally or to fix n flip. Using the $ listed, purchase a "B" property and begin the cash flow, tax deduction game then continue to roll into others.

Obviously, with a potential short sale and big credit ding, typical financing is not an option and thus, neither are the numbers to make this work. Found a portfolio lender with great terms but won't touch until 2 years seasoning. Other lenders are willing to work after a year but with less than desirable rates that make cash flowing difficult.

So what to do with the $? There are no guarantees the credit/short sale issue will be resolved anytime soon. How would you savvy BP investors proceed?

- Invest what you can in the lending arena?

- Some sort of owner-financing with the hopes things clear up eventually?

- Save more and buy cash in C/Ds areas?

- Nothing, you're f*(&@d

- Sit and wait

- None of the above. Here's a great idea TJ I'll share in the comments!

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Originally posted by @Gary Baker:

@Amit Kal
Amit, I am looking at the retail MLS. I am not savvy; I unfortunately was uneducated in the ways of the real world of finance and relied on the stock market. But after every crash for the last 30yrs I finally woke up to the fact that I literally have not made any real gains in the stock market in all this time. So in time for retirement, I now have to apply high risk strategies to help bolster an otherwise non-existent 401k. As for 20-30% below market value properties, I have only seen them in C/C- areas and I am uncomfortable/scared with this as not being savvy and streetwise. I am on a wholesaler email list, but honestly the ARV they give is too high and the repair estimates are very low. I need to get on a few more lists.

Nailed it here.

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Originally posted by @Stephanie Medellin:

@TJ P. Are you trying to buy a primary residence or investment properties? My company works with a few lenders with flexible underwriting. One has a 1 year seasoning period and another has no seasoning period for short sales. There are still minimum credit requirements and slightly higher down payment if that's something you'd be interested in. Rates are higher for these loans though - in the 6's and up.

The seasoning is for my credit- if I'm reading your post correctly. My previous residence is held up in a short sale and is a big ding on my credit.

This is for investment properties. For what I'm looking at, the higher rate/ higher down aren't worth it right now. I will file this though and touch base with you when I get affairs squared away.

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Originally posted by @Gene Hacker:

@TJ P.

Good to hear your results. How did you make first contact with the smaller local banks? Did you just call them and ask for the business lending department? I just created a list of small local banks, so any insight you can share would be very helpful.

I am a member of two CUs. One is for military and surprisingly, wasn't better than a local one in NV. Two others were mentioned to me talking to a couple of folks on here.

Yep- I just called and asked for investment mortgage dept and eventually got to the right person.

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All Forum Posts by: TJ P.

TJ P. has started 6 posts and replied 111 times.

Post: My Turnkey Portfolio

Post: Making My Turnkey Provider Trip Tax Deductible

Post: How to be an "equity partner"?

Post: Memphis Invest

Post: Who's pay's $1,300 for rent?

Post: Unique Dilemma- Have $ but can't invest

Post: Unique Dilemma- Have $ but can't invest

Post: 1%-2% rental rule of thumb

Post: Portfolio lenders or lenders for buy and hold investors.

Post: Portfolio lenders or lenders for buy and hold investors.